Factory Oak produces various wooden bookcases, tables, storage units, and chairs. Which of the following would be included in a listing of the company's non-value-added activities?
A)Assembly of tables.
B)Staining of storage units.
C)Gluing of chairs.
D)Transfer of chairs from the assembly line to the gluing department.
E)Assembly of tables, staining of storage units, and gluing of chairs.

Question

Quizplus · Accepted Answer

The transfer of chairs from the assembly line to the gluing department is a non-value-added activity because it does not directly contribute to the final product's value from the customer's perspective. It is considered a necessary but non-value-adding logistical step.

Factory Oak Produces Various Wooden Bookcases, Tables, Storage Units, and Chairs